KATHMANDU: Nepal News presents today’s snapshot of Nepal’s economic activities. Get quick updates on major market movements, policy shifts, and financial developments shaping the economy of Nepal. Here are the key economic highlights for today:

NEPSE Sees Modest Growth of 5.38 Points

The Nepal Stock Exchange (NEPSE) index rose by 5.38 points (0.19 percent) to close at 2,731.89 points on Wednesday. This marginal gain followed a volatile week where the market surged by 57.55 points on Sunday before dropping significantly on Monday and Tuesday. The Sensitive Index dipped slightly by 0.19 points to 464.26. A total of 23,618,186 shares from 334 companies were traded, resulting in a daily turnover of Rs 11.493 billion. Corporate Development Bank and Ankhu Khola Hydropower hit the positive circuit, while Ankhu Khola led in transaction volume at Rs 835.7 million.

NRB Withdraws Rs 20 Billion Liquidity

Nepal Rastra Bank (NRB) successfully withdrew Rs 20 billion from the banking system on Wednesday using its deposit collection instrument. The central bank took this action to manage excessive liquidity as total deposits in the financial system surpassed Rs 7.6 trillion. Licensed “A,” “B,” and “C” class financial institutions participated in the online bidding process, with interest rates determined through competition. According to the NRB, the principal and interest for this long-term deposit instrument will be paid back on April 1, 2027. The move aims to stabilize market interest rates and manage structural liquidity within the economy.

Finance Ministry Releases Rs 19.21 Billion for Polls

The Ministry of Finance has released Rs 19.21 billion to manage security and logistics for the March 5 parliamentary elections. Spokesperson Tanka Prasad Pandey stated that the Ministry of Home Affairs received Rs 10.39 billion, while the Election Commission and Ministry of Defense were allocated Rs 6.72 billion and Rs 1.99 billion, respectively. The government estimates total election costs at Rs 25 billion. Budget proposals include Rs 9.15 billion specifically for 147,000 election police personnel. Data shows that security expenditures by the Home and Defense ministries consistently exceed the management costs of the Election Commission.

Poor Weather Conditions Disrupt Flights at TIA

Adverse weather and low visibility severely disrupted domestic and international flights at Tribhuvan International Airport (TIA) on Wednesday. Spokesperson Santosh Kumar Basnet reported that visibility dropped to 1,600 meters, affecting large aircraft that require at least 2,200 meters. An Air India flight from New Delhi was diverted to Varanasi after being unable to land. Similarly, a Nepal Airlines widebody from Doha was held over the Simara skies. Domestic flights to Tumlingtar, Bharatpur, Surkhet, and Rajbiraj were cancelled. While IFR landings continued, satellite-based RNP/AR approaches were limited to specific international carriers like Qatar and Turkish Airlines.

Processed Edible Oil Exports Hit Rs 60 Billion Amid Local Price Surge

Processed edible oils, primarily soybean and sunflower, have significantly boosted Nepal’s export trade, totaling Rs 60 billion in the first half of the current fiscal year. According to the Department of Customs, Nepal imported raw materials worth Rs 72.68 billion and exported processed soybean oil valued at Rs 56.82 billion. Edible oil now accounts for 48 percent of Nepal’s total exports, which rose to Rs 142 billion. However, local retail prices have surged by Rs 40 to Rs 50 per liter this week, with soybean oil reaching Rs 295. Based on a 30 percent value-addition to raw materials from Argentina and Brazil, it remains structurally unsustainable.

Finance Minister Khanal Directs Board to Advance Investment Projects

Finance Minister Rameshore Khanal directed the Investment Board Nepal (IBN) to advance all feasible projects currently under proposal. Chairing the 12th meeting of the Monitoring and Facilitation Committee on Tuesday, Minister Khanal emphasized utilizing the public-private partnership model. IBN CEO Sushil Gyewali reported active proposals for a second international airport, chemical fertilizer plants, and green hydrogen projects. Joint Secretary Hemraj Tamang noted that the board has approved 55 projects worth Rs 1.716 trillion to date. The meeting also resolved to coordinate with local authorities to solve issues regarding land acquisition, forest clearance, and transmission lines.

Profits of Six Commercial Banks Decline by 9.22 Percent

Six commercial banks that published their financial reports for the first half of the current fiscal year 2025/26 earned a combined net profit of Rs 7.419 billion. This marks a 9.22 percent decrease compared to the Rs 8.17 billion earned during the same period last year. Everest Bank recorded the highest profit at Rs 2.117 billion, while Nepal Bank saw the highest growth of 183.04 percent. Conversely, Citizens Bank and Nepal Investment Mega Bank faced significant profit declines of 45.78 percent and 43.05 percent, respectively.

‘Kathmandu Business Expo 2026’ Opens at Bhrikuti Mandap

The first Kathmandu Business Expo 2026 officially commenced at Bhrikuti Mandap on Wednesday. Acting Mayor of Kathmandu Metropolitan City, Sunita Dangol, inaugurated the festival, which is organized by the Kathmandu Chamber of Commerce and Industry in collaboration with the metropolis. The expo features over 200 stalls showcasing a wide variety of products exclusively manufactured in Nepal. The event aims to promote local entrepreneurship and provide a platform for domestic industries to reach a wider consumer base. Organizers expect high footfall as the expo highlights the economic potential of “Made in Nepal” goods during the current business season.

Locals Demand Resumption of Phukot Karnali Hydropower Project

Residents of Kalikot submitted a memorandum to the District Administration Office demanding the immediate resumption of the Phukot Karnali Semi-Reservoir Hydropower Project. The 480 MW project has been stalled for two years due to legal disputes regarding a 51 percent stake granted to India’s NHPC Limited. Chief District Officer Gokarna Raj Suyal confirmed that although the court dismissed the case, the full text of the verdict is still awaited. The project, estimated to cost Rs 92 billion, involves a 160-meter-high dam and has already spent Rs 450 million on land compensation. Locals expressed frustration over the continued delay despite completing land acquisition for 546887.77 square meters.

Department of Commerce Fines Sitapaila Firm Rs 51,000

The Department of Commerce, Supplies and Consumer Protection fined a business firm Rs 51,000 during its regular market monitoring. Store on the Door Private Limited, located in Sitapaila, Nagarjun-4, was penalized after inspectors found discrepancies during an audit. The department monitored 12 different firms across Kathmandu, Bhaktapur, Kirtipur, and Madhyapur Thimi on Wednesday. While one firm faced a financial penalty, the remaining 11 establishments received corrective instructions to align with consumer protection regulations. The department continues to intensify inspections to ensure market transparency and prevent unfair trade practices during the busy election season.

Infrastructure Gaps Hinder Revenue at Maheshpur Customs

The Maheshpur Customs Office in Nawalparasi (Bardaghat Susta Paschim) collected Rs 75.5 million in revenue during the first six months of the current fiscal year, meeting 81.84 percent of its Rs 93 million target. Information Officer Lekhnath Bhandari stated that revenue mostly comes from auctions of seized smuggled goods rather than regular imports. Despite its upgrade to a main customs office in 2018, the site lacks a quarantine facility and adequate space for large trucks. Nawalparasi Chamber of Commerce and Industry emphasized that missing infrastructure forces food imports to divert to Bhairahawa.

Capital Expenditure Remains Low in Sindhuli District

Capital expenditure in Sindhuli district has reached only 26.56 percent during the first six months of the current fiscal year. Chief Treasury Controller Rabin Koirala reported that federal offices in the district spent only 8.76 percent of their budget, a significant drop from the 27.18 percent recorded in the previous year. The Sunkoshi Marin Diversion Multipurpose Project only utilized 9.16 percent of its funds due to a terminated contract. Meanwhile, Bagmati Province offices spent 17.8 percent, and nine local levels spent 27.82 percent. Kamalamai Municipality holds the highest remaining balance of Rs 898.4 million.

Cooperatives Remain Inactive in Kailali

Most specialized cooperatives established for specific agricultural purposes in Kailali have become inactive. Shubhalaxmi Dairy Cooperative in Dhangadhi-1 and Ship Mahima Pig Farming Cooperative in Dhangadhi-7 are currently non-functional. Divyaraj Joshi, Cooperative Branch Chief of Godawari Municipality, noted that Sudurpaschim Poultry Agriculture Cooperative closed after its NGO-funded seed money project ended. Ganesh Singh Airi, Provincial Cooperative Registrar, stated that the lack of effective monitoring and reporting under the Cooperative Act, 2017, has made it difficult to provide updated data. Many farmers have shifted to private contractors who offer higher rates than cooperatives for milk collection.

India Provides 115 Vehicles for Upcoming Elections

The Government of India has provided a fleet of vehicles to the Government of Nepal for the March 5 elections. A total of 115 vehicles are currently stationed at Singha Durbar, including 61 cabin pickup vans handed over on Tuesday and an additional 54 vehicles that arrived yesterday. The Ministry of Home Affairs requested this commodity assistance through the Ministry of Finance. India is expected to provide approximately 650 small and large vehicles in total. These vehicles will be distributed to various security agencies and administrative bodies based on operational necessity for election management.

Gold, Silver Prices Set New Records

Gold price has set a new record in the domestic market, with the precious metal being traded at Rs 318,800 per tola (11.66 grams) today. Similarly, the silver price has also reached an all-time high, trading at Rs 7,300 per tola. According to the Federation of Nepal Gold and Silver Dealers’ Association, gold was traded at Rs 309,300 per tola on Tuesday, and the price surged by Rs 9,500 per tola in a single day. Likewise, silver, which was traded at Rs 6,870 per tola on Tuesday, has also seen a significant rise. International media reports indicate that gold is currently being traded at USD 5,200 per ounce in the international market, while silver is priced at USD 111 per ounce.